Negative Interest Rate Policies: Taking Stock of the Experience So Far
R. Gaston Gelos,
Gunes Kamber and
CESifo Forum, 2021, vol. 22, issue 06, 27-32
For almost 10 years, several central banks in advanced economies have cut and maintained their key policy rates below zero. Central banks in Denmark, the euro area, Japan, Sweden, and Switzerland had turned to such policies in response to persistently below-target inflation rates and a very low neutral real interest rate. However, negative rate policies remain controversial, and their potential side effects are subject to much debate. This paper surveys the body of research that has grown out of the experience with the policy to date, and takes stock of the evidence. Overall, the experience with negative rates has broadly been positive. Lending and deposit rates fell following the adoption of NIRP. Bank lending volumes rose, and bank profits for the most part did not significantly deteriorate.
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.cesifo.org/DocDL/CESifo-Forum-2021-6-b ... st-rate-november.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ces:ifofor:v:22:y:2021:i:06:p:27-32
Access Statistics for this article
CESifo Forum is currently edited by Chang Woon Nam
More articles in CESifo Forum from ifo Institute - Leibniz Institute for Economic Research at the University of Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().